Private individual- how do you avoid VAT on a used van?!
Discussion
Only way is to buy from someone who is not vat registered. VAT is almost certainly going to be charged from a dealer.
If your not registered yourself, in a trade and its an expensive van it might be worth looking into registering, but also consider that if its a works van the total price you pay not being VAT registered is applicable for Annual Investment Allowances, so its swings and roundabouts really as you should make your money back in someway from the tax man.
If your not registered yourself, in a trade and its an expensive van it might be worth looking into registering, but also consider that if its a works van the total price you pay not being VAT registered is applicable for Annual Investment Allowances, so its swings and roundabouts really as you should make your money back in someway from the tax man.
You only pay VAT on the difference between buy in price and selling price, on a used vehicle anyway.
Sof if the garage bought it for £15000, they then spend £1000 prepping it, and then sell it for £18000 they have to pay the VAT on the £2000 profit.
So out of that £18000 sale of £298 is VAT.
Sof if the garage bought it for £15000, they then spend £1000 prepping it, and then sell it for £18000 they have to pay the VAT on the £2000 profit.
So out of that £18000 sale of £298 is VAT.
gizlaroc said:
You only pay VAT on the difference between buy in price and selling price, on a used vehicle anyway.
Sof if the garage bought it for £15000, they then spend £1000 prepping it, and then sell it for £18000 they have to pay the VAT on the £2000 profit.
So out of that £18000 sale of £298 is VAT.
On a commercial vehicle dealers usually charge VAT as an extra on top of the total selling price. Sof if the garage bought it for £15000, they then spend £1000 prepping it, and then sell it for £18000 they have to pay the VAT on the £2000 profit.
So out of that £18000 sale of £298 is VAT.
Chris_w666 said:
gizlaroc said:
You only pay VAT on the difference between buy in price and selling price, on a used vehicle anyway.
Sof if the garage bought it for £15000, they then spend £1000 prepping it, and then sell it for £18000 they have to pay the VAT on the £2000 profit.
So out of that £18000 sale of £298 is VAT.
On a commercial vehicle dealers usually charge VAT as an extra on top of the total selling price. Sof if the garage bought it for £15000, they then spend £1000 prepping it, and then sell it for £18000 they have to pay the VAT on the £2000 profit.
So out of that £18000 sale of £298 is VAT.
Really?????? A Hi-Ace?????
That's the van that finally put me off vans and back to estates for transporting the bike(s) around and I'm glad I did.
It was a pre-facelift (04 at a guess) one I drove and it was the worst out of the bunch I tried. Dreadfully slow, ancient technology and engine and just horrible to drive. It did actually seem to be one of the more reliable ones to be fair.
Did like the upward's opening rear door though as it'd double as a shelter if it's raining!
Some of the bigger dealers will also have vans in with no VAT if it's come from a private user in the past but they seemed to be few and far betweem.
That's the van that finally put me off vans and back to estates for transporting the bike(s) around and I'm glad I did.
It was a pre-facelift (04 at a guess) one I drove and it was the worst out of the bunch I tried. Dreadfully slow, ancient technology and engine and just horrible to drive. It did actually seem to be one of the more reliable ones to be fair.
Did like the upward's opening rear door though as it'd double as a shelter if it's raining!
Some of the bigger dealers will also have vans in with no VAT if it's come from a private user in the past but they seemed to be few and far betweem.
It doesn't matter if the dealer is small, medium or large. If the dealer purchased the van from someone who is not VAT registered, then the van is treated as a margin vehicle (ie no vat to be added) and the dealer will pay VAT on the profit he makes. They do come up for sale every now and again - just keep your eyes peeled.
However! I would recommend throwing away those VAT blinkers! Vans which do not have VAT on them command a small premium over those which do have VAT on them, as they are deemed to be more desirable by non-VAT registered users.
When you come to part exchange a vehicle which you will not have been able to reclaim the VAT on, because there will be no VAT on it, it will again command a premium.
I hope that makes sense!
However! I would recommend throwing away those VAT blinkers! Vans which do not have VAT on them command a small premium over those which do have VAT on them, as they are deemed to be more desirable by non-VAT registered users.
When you come to part exchange a vehicle which you will not have been able to reclaim the VAT on, because there will be no VAT on it, it will again command a premium.
I hope that makes sense!
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